If you’re relying on your credit card to get you through emergencies, it’s not hard to understand why it feels like you can just never get ahead. It can be emotionally and mentally taxing to be living a paycheck to paycheck lifestyle. But the good news is you can change it.

The chances are high that you’re making some serious mistakes that are prohibiting you from getting ahead financially. If you’re serious about getting out of the paycheck-to-paycheck lifestyle and are ready to make some big financial changes, then read on.

You have more car than you can afford

I cannot tell you how often I hear people complain about not having enough money as they drive off in their newly leased top of the line car. Buying more car than you can afford is a serious mistake that way too many Americans make. If you’re not currently putting anything toward your savings account, but yet are driving a car that is five years old or less, then you’re making a big financial mistake that is costing you big.

What to do: Think about downsizing your car and getting something that will be better for your budget, even if that means buying used, or taking public transportation for a while. Auto loan debt is a big reason Americans continue to live paycheck to paycheck. It’s definitely a hard decision—who wants to give up driving their nice car?—but it is one that will make a big stride toward getting yourself out of the paycheck to paycheck rat race.

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You’re not saving 10% of your paycheck

If you’re living paycheck to paycheck, chances are you’re not saving any money! And that is a big mistake. Any emergency that arises, whether it is a car repair or health issue, will force you to add more debt to your pile—ensuring that you keep living the paycheck to paycheck lifestyle.

What to do: If you wait till the end of the month to figure out what you can put into savings, you’ll never have any money left. Instead, pay yourself first by automatically transferring 10% of your paycheck to a savings account that is not connected to your checking account. This will force you to live on less. No more dining out as much, or spending frivolously. It will take a few months to adjust but once you make it a habit, you’ll have a nice savings cushion.

You have the latest technology

How many times have you upgraded your phone in the past five years? How big is your television? How many computers, laptops, tablets, ipods, and cell phones do you have? Are you seeing a trend here?

Perhaps technology is not your thing, maybe it’s another hobby, like golf. Take a real good look at your lifestyle and see what is causing you to spend to excess. Is your technology addiction out of control? How much money have you put toward your hobby in the past year?

Chances are you will find some type of excess that you can cut out.

What to do: You don’t have to cut out all the fun in your life to save money, but reducing your spending on the excess and sticking to a budget can really help you find extra money to put toward savings and break free from the paycheck to paycheck lifestyle.

This post was published by Erika Torres, for » ReadyForZero.
ReadyForZero is a company that helps people get out of debt on their own with a simple and free online tool that can automate and track your debt paydown.

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better yet do not cut things you enjoy enjoy life have fun thats what life is all about.

Only18Powers

Dear Mr. President
Whenever congress presents you with a spending bill that overdraws their checking account, please explain to congress that you have to veto it. Please explain to congress that by overdrawing their checking account, again, they will be making things worse, not better. Since congress has already overdrawn it’s checking account by $18 Trillion, congress has way too much debt. Remind them that America’s debt target is zero, because the more debt congress has, the more interest congress has pay, and right now, congress is wasting over $1.2 Billion of it’s $5 Billion daily income in interest on the debt. When the debt is gone, congress won’t be wasting over $1 Billion a day in interest. To get to the target of zero debt, congress has to work toward that goal every single day, and only you, Mr. President, can force them to spend LESS than they take in every day. You can suggest to those in congress that congress conserve just 18 cents of every dollar of it’s income and use it for 3 things. Use 15 cents to pay down the debt and 3 cents to cut taxes and build a reserve fund for emergencies. Zero debt would SAVE $430 Billion in interest every year. That’s a savings of $1.2Billion every day.

Janet Robinson

How about our President just stop spending our hard earned money on entitlement programs aimed at making America a socialist nation. I’m sick of working myself to death and paying outrageous taxes, only so 52% of American’s don’t have to work and pay taxes. You’ll find those 52% in the casinos spending the hard earned money of working class Americans. I can’t wait til the end of Obama’s presidency. It can’t come soon enough!

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